Americans have $12.25 trillion in debt. That amount is actually 3.3 percent lower than the all-time high set in 2008, according to the Federal Reserve Bank of New York. Even so, it’s worth considering how we got to the point of owing trillions of dollars.
Mortgages make up the bulk of household debt — nearly 70 percent, according to the Federal Reserve Bank of New York. Student loan balances account for another 10 percent. But that still leaves more than $2 trillion that Americans have borrowed to cover the cost of things other than homes and education.
If you’re in debt, you might be wondering how you ended up owing so much. It might not be obvious. In fact, you might have money habits that you don’t even realize are contributing to your debt. Or, you might be borrowing for what seems like a good reason, but really you’re just hurting your finances. Here are seven surprising ways you might be putting yourself into debt — and tips on how to avoid this financial burden.